What is the primary goal of health insurance?

The primary goal of health insurance is to protect individuals from high medical expenses. Health insurance functions as a financial safety net that helps mitigate the risk of unforeseen medical costs which can be overwhelming. It allows individuals to access necessary medical care without facing exorbitant out-of-pocket expenses that could lead to financial distress or bankruptcy.

This protection is achieved through the pooling of risks among a large group of insured people, where the costs of healthcare are shared among all members. When an individual requires medical care, health insurance can cover a portion of those costs, making healthcare more affordable and accessible.

Other options, although related to aspects of health insurance, do not encapsulate its primary goal as accurately. Providing free healthcare services, for instance, is not a fundamental principle of health insurance, which operates on a system of premiums and cost-sharing. Coverage for all healthcare costs isn't feasible within insurance frameworks; instead, health insurance is designed to cover a significant part of medical expenses while still leaving some financial responsibility to the insured. Lastly, while increasing the number of insured individuals is important for broader access to healthcare, it does not define the main purpose of health insurance itself, which is fundamentally about financial protection against high medical costs.